SPUS and HLAL are two of the most widely used halal ETFs available to Muslim investors in the United States.
Both funds are designed to provide diversified exposure to U.S. equities while applying Sharia screening rules that remove companies involved in industries such as conventional banking, alcohol, gambling, and other prohibited activities.
Because both ETFs aim to solve the same problem—providing halal access to the stock market—many Muslim investors compare them directly when building their portfolios.
This guide explains how SPUS and HLAL differ, how each ETF works, and what Muslim investors should consider when choosing between them.
You can also explore our full halal ETF comparison here:
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SPUS vs HLAL Overview
| Feature | SPUS | HLAL |
|---|---|---|
| Full Name | SP Funds S&P 500 Sharia Industry Exclusions ETF | Wahed FTSE USA Shariah ETF |
| Provider | SP Funds | Wahed |
| Launch Year | 2019 | 2019 |
| Index | S&P 500 Sharia Industry Exclusions | FTSE USA Shariah Index |
| Market Focus | Large-cap U.S. companies | Large and mid-cap U.S. companies |
| Expense Ratio | ~0.45% | ~0.50% |
Although both funds follow Sharia screening standards, their index methodologies and portfolio composition are different.
What SPUS Is Designed to Do
SPUS is designed to track a Sharia-screened version of the S&P 500.
The ETF applies Islamic screening rules to companies within the S&P 500 and removes businesses that do not meet those criteria.
The fund ultimately holds roughly 200 Sharia-compliant companies drawn from the S&P 500 universe.
Because it focuses on S&P 500 companies, SPUS tends to emphasize large U.S. corporations across sectors such as technology, healthcare, and consumer industries.
You can read a full breakdown here:
What HLAL Is Designed to Do
HLAL tracks the FTSE USA Shariah Index, which includes a broader group of Sharia-screened U.S. companies.
Unlike SPUS, which focuses only on companies within the S&P 500, HLAL includes both large-cap and mid-cap companies.
This means HLAL may hold a wider range of companies across the U.S. market.
Because of this broader coverage, HLAL can sometimes include companies that are not part of the S&P 500.
For a deeper breakdown of the ETF, see our review:
Major Differences Between SPUS and HLAL
Index methodology
SPUS is based on a Sharia-screened version of the S&P 500, while HLAL uses the FTSE USA Shariah Index.
These indexes use similar screening principles but rely on different methodologies and index providers.
Market coverage
SPUS focuses primarily on large-cap companies within the S&P 500.
HLAL includes both large- and mid-cap companies, which may provide slightly broader market exposure.
Fees
Both ETFs have relatively similar expense ratios compared with other halal ETFs.
SPUS typically charges around 0.45%, while HLAL is generally around 0.50%.
Sector Exposure Differences
Because both ETFs apply Sharia screening rules, certain industries such as conventional banking are excluded.
As a result, technology companies often represent a larger share of the portfolio compared with conventional stock indexes.
Technology and healthcare sectors frequently dominate the holdings of halal ETFs because many financial institutions are excluded by Islamic screening standards.
Which Halal ETF Is Better?
There is no single ETF that is best for every Muslim investor.
SPUS may appeal to investors who want exposure closely tied to the S&P 500.
HLAL may appeal to investors who prefer broader exposure across both large and mid-cap companies.
Some investors choose one ETF as their core investment, while others combine multiple halal ETFs to build diversified portfolios.
If you are new to halal investing, you may also want to read:
How Muslims Can Start Investing
Frequently Asked Questions
Are SPUS and HLAL both halal?
Both ETFs apply Sharia screening methodologies designed to remove companies involved in prohibited industries and limit excessive reliance on interest-based financing.
Do SPUS and HLAL hold the same companies?
Some holdings overlap, but the funds track different indexes and may include different companies.
Which ETF is larger?
Both ETFs have grown significantly as halal investing has expanded in the United States.
The Bottom Line
SPUS and HLAL are two of the most prominent halal ETFs available to Muslim investors in the United States.
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See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
Both provide diversified exposure to Sharia-screened U.S. equities, but they differ in index methodology, market coverage, and portfolio composition.
Understanding these differences can help Muslim investors decide which halal ETF may better align with their investment goals.
